Postal Service announced end of Saturday mail service

Postal Service expects to save about $2 billion annually once new plan is fully implemented.
Norwalk Reflector Staff
Feb 6, 2013

The United States Postal Service announced plans today to transition to a new delivery schedule during the week of Aug. 5, 2013 that includes package delivery Monday through Saturday, and mail delivery Monday through Friday. The Postal Service expects to generate cost savings of approximately $2 billion annually, once the plan is fully implemented.

“The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America’s changing mailing habits,” said Patrick R. Donahoe, Postmaster General and CEO. “We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings.”

Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages. However, recent strong growth in package delivery (14 percent volume increase since 2010) and projections of continued strong package growth throughout the coming decade led to the revised approach to maintain package delivery six days per week.

“Our customers see strong value in the national delivery platform we provide and maintaining a six-day delivery schedule for packages is an important part of that platform,” said Donahoe. “As consumers increasingly use and rely on delivery services — especially due to the rise of e-commerce — we can play an increasingly vital role as a delivery provider of choice, and as a driver of growth opportunities for America’s businesses.” 

Once implemented during August of 2013, mail delivery to street addresses will occur Monday through Friday. Packages will continue to be delivered six days per week. Mail addressed to PO Boxes will continue to be delivered on Saturdays. Post Offices currently open on Saturdays will remain open on Saturdays. 

Market research conducted by the Postal Service and independent research by major news organizations indicate that nearly seven out of ten Americans (70 percent) supported the switch to five-day delivery as a way for the Postal Service to reduce costs in its effort to return the organization to financial stability. Support for this approach will likely be even higher since the Postal Service plans to maintain six-day package delivery.

The Postal Service is making the announcement today, more than six months in advance of implementing five-day mail delivery schedule, to give residential and business customers time to plan and adjust. The Postal Service plans to publish specific guidance in the near future for residential and business customers about its new delivery schedule.

Given the ongoing financial challenges, the Postal Service Board of Governors last month directed postal management to accelerate the restructuring of Postal Service operations in order to strengthen Postal Service finances.

“The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation,” said Donahoe. “The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail.”

The operational plan for the new delivery schedule anticipates a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented.

The Postal Service is currently implementing major restructuring throughout its retail, delivery and mail processing operations. Since 2006, the Postal Service has reduced its annual cost base by approximately $15 billion, reduced the size of its career workforce by 193,000 or 28 percent, and has consolidated more than 200 mail processing locations. During these unprecedented initiatives, the Postal Service continued to deliver record high levels of service to its customers.

While the change in the delivery schedule announced today is one of the actions needed to restore the financial health of the Postal Service, legislative change is urgently needed to address matters outside the Postal Service’s control. The Postal Service continues to seek legislation to provide it with greater flexibility to control costs and generate new revenue and encourages the 113th Congress to make postal reform legislation an urgent priority.

The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.

Comments

Cliff Cannon

About time .

jack langhals

Agreed !

Contango

Privatize it.

Only a govt. entity could have a monopoly and still lose money.

Old joke: If the govt. owned a funeral home, no one would die.

swiss family

I thought jokes were supposed to be funny????

Contango

Sign in front of cemetery: We'll help put the "fun," back in funeral.

betrump

That's your answer to everything. "Privatize It." In a few years, you'll be whining when you have to pay $6 to send a letter across the county. Seen gas prices lately? Record profits for big oil? How's that privatization working out for you? (I know, it's Obama's fault...)

Contango

@ betrump:

So what's your lunkheaded answer; subsidize 'em with billions more taxpayer and borrowed dollars?

Pres. Obama's former economic advisor Peter Orszag has some ideas, read 'em:

http://www.bloomberg.com/news/20...

betrump

Yeah, like it says: If congress got out of the way. Because it's all BS politics. The rightwingnuts have wanted to privatize it for years, which benefits no one but those wealthy enough to own it.

"But the root cause of the financial distress that the Postal Service is going through is overwhelmingly caused by Congressional mandates that were imposed upon the Postal Service. Congress passed the Postal Accountability and Enhancement Act (PAEA), which was signed into law by President G.W. Bush on December 20, 2006. Under the guise of modernizing the Postal Service for the 21st Century, it actually doomed the Postal Service. If not for the PAEA, the Postal Service would be functioning fine even with the impact of email and the financial collapse of 2008.
One of the provisions of the PAEA was to mandate that the Postal Service fully pre-fund future retiree health benefits for the next 75 years, and to do it within a ten-year window. This means that the Postal Service is required to send to the U. S. Treasury $5.5 billion each September 30. Remember, this is to pay for the future retirement health benefits of people who haven't even been born yet. The Postal Service is the only entity that is mandated by law to do this. No government agency, corporation or organization is required to fully pre-fund future retirees' health benefits.

But that is not the worst of it. Both the Postal Service's Office of Inspector General (OIG) and the independent Postal Regulatory Commission (PRC) commissioned audits to look into possible overpayments that the Postal Service has made into the Civil Service Retirement System (CSRS). Both audits show that the Postal Service has overpaid at least $50 billion into the pension fund over the years." ~C. Zlatkin

My lunkheaded answer is to quit strangling them on purpose for the sake of wealthy investor profits. Get your head out of the sand, man. Ignorance hurts us all.

Contango

@ betrump:

Nice copy and paste nonsense from a loony socialist site.

http://www.opednews.com/articles...

Did you read the Orszag piece?

Here's a "simple" test for ya: Are you using the USPS more than you did a decade ago?

So what's Pres. BHO's "solution"?

http://www.reuters.com/article/2...

all fact or all...

His head must be somewhere besides the sand. If he can't give a reasonably sound rebutal he comes up with some off the wall comment. It's kind of like the bumper sticker that I saw, it read " Democrates are not always right, but they are "NUTS". guess who they are? lol He must have read what the postal act was sense he thinks it was copied and pasted and look at the only answer he could come up with.

Contango

all fact or all...:

So Pres. BHO's former economic advisor is wrong? How so?

I asked: What's Pres. BHO's solution?

The response: The sound of chirping crickets in the minds of the Democrat Peanut Gallery.

all fact or all...

This is the first step in privatizing it and I agree with you, these people who cant stand having a black President will be blaming him in 10 years because it is happening on his watch. It is not suported by tax dollars. In 2006, UNDER BUSH Congress passed the Postal Accountability and Enhancement Act. This law requires the Postal Service to do something that no other business or government agency has to do–pre-fund its FUTURE retiree health care benefits. This is a 75 year liability that has to be paid in 10 years. The Postal Service makes a payment of approximately $5.5 billion on September 30 at the end of every fiscal year to meet this obligation. The Post Office has been paying these benefits the past six years into a trust fund for employees who have not even been born yet. This is the burden that is creating the “financial crisis” for the Post Office. The recession that has gripped America the past few years has undoubtedly affected the Postal Service, but even in the worst economic times since the great depression, the USPS has had a "net profit of $611 million dollars". Unfortunately, the RED ink associated with the post office is the mandated pre-funding since 2006. SO IF YOU WANT TO BLAME A PRESIDENT START WITH "BUSH"

Contango

So you don't believe that the USPS should fund their own rich health and welfare benefit structure and that the costs should be ultimately borne by taxpayers?

Not blamin' any Pres. - sign of the times.

See IL: They've got a real public employee fiscal cow pie that's costing 'em $11M a day!

What the Democrats have done for IL, they can CERTAINLY do for the rest of the country.

all fact or all...

Do you do any research on the subjects you post on? Funding their own health care is fine, but not for 75 years in advance. Check it out..you have a computer. It's all over the place. NO TAX DOLLARS... WHEREAS, the Postal Service does not presently receive taxpayer dollars as it did in the past and is currently funded solely through the sale of stamps, shipping costs and other services.

Contango

The point: If the USPS doesn't fund it's own rich health and welfare benefit structure and it fails, who will pick up the tab? Answer: Taxpayers.

75 yrs.? Covers the retirees.

If the USPS can't show a profit - privatize it.

all fact or all...

They were making a profit till Bush stepped in and "Borrowed it" then passed the postal act in 2006, you really need to study up on your facts.. It is not funded by tax dollars. I sure hope people look into some of these posts and check the facts and don't take your word as law. A lot of people have already lost their jobs through cut backs and closings, now rural areas are going to hurt and a lot of veterans are going to be out of jobs (post office largest employer of veterans) And ya 75 years when no other companies are requred to do this..There is their profit.

betrump

Facts mean nothing to him. Only Conservative Dogma. He has no ability to think for himself, nor can he ever admit being wrong. If the right-wing says so, He'll go to his grave believing it.

Contango

@ betrump:

derp

Contango

all fact or all... writes:

"And ya 75 years when no other companies are requred to do this.."

Wrong, private cos. are required to have their DB pension plans fully funded.

Most private cos. do not cover and fund retiree health care benefits - VERY expensive.

So why didn't the Dems correct this USPS funding inequity when they controlled Congress from early 2007 through late 2010? Huh?

Where's Pres. BHO on this?

http://www.reuters.com/article/2...

mikel

they are waiting until august why???????

rickross2

another thing ruined by the internet! The list will continue to grow and grow. The internet is the devil

feedthetrolls

no, the internet is better. we drive cars because they are better than horses. fly in planes because they are better than trains.

rickross2

Moderators have removed this comment because it contained Personal attacks (including: name calling, presumption of guilt or guilt by association, insensitivity, or picking fights).

rickross2

Its a good thing that computers cant flip burgers, or it might have taken your job!

snapthat

I find it funny that you say the internet is the devil yet you seem to be using it to post your "rant!" SNAP THAT!

rickross2

Yea its pretty funny. I'm a funny dude. But seriously pluck the internet.

Commenter

It's just a shift in career opportunities, it's not the internet's fault.
Instead of letter carriers the world will need more computer programmers, maybe customer service reps at the companies that are taking internet orders. It's a sign of the economy that people look for "free" ways to read their news or receive correspondence. It's not "free" though....we pay for either an internet provider or a cell phone company. For some, the internet has opened up a whole new world of customers for products they sell and an audience they might not have otherwise. It's change, and you have to embrace change, keep up with the times and find something new.

tadpole

"It's change". That's right and if it wasn't for change, wheels would still be square. Bring it on, I love different stuff to mess with.

rickross2

Moderators have removed this comment because it contained Profane, obscene, sexual or derogatory language.

Estrella Damm

That is a huge job to partake in.

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